Financial & Accountancy

Time to Collect

With business suddenly under pressure from external factors, it is time to ensure to that all avenues to collect cash are examined, besides the obvious debt collection, ensuring overdrafts remain live and so on, collecting unclaimed tax reliefs may be very effective at increasing cash or spreading the burden.

Research and Development credits and deductions are easy to claim but tricky to maximise well, and with a small investment of time can yield material benefits, especially when amending old years. Some businesses are introducing share incentives instead of bonuses to reduce cash outflows in the short term and changing car policies to reduce the cost burden.

Tweaking year ends can accelerate loss relief, and the cash that comes from that, and given the time of year, many businesses are looking at first quarter losses. Losses can be claimed and in the right circumstances refunded at nineteen pence in the pound in cash.  Smaller refunds can arrive in days, larger ones take a few weeks.

Extraction of funds for business owners is often overlooked, and the rate of tax on extraction is very often limited to PAYE or Dividends, two of the most expensive methods. Refining the extraction method often reduces the tax cost of extraction to as low as 1% effective tax rate, which can be a significant saving. Doing the same as last year is not a perfect answer when other more efficient options are available. Done properly this represents a significant saving and can result in refunds of tax paid in January this year and cancel amounts due in July as well.

There are lots of options to get cash in sensibly and quickly to help in trying times, and with 5 April coming soon, the time to act is now for savings relating to this tax year.

SPECIALISTS IN TAX & ACCOUNTANCY

OVER 100 YEARS EXPERIENCE WITHIN THE TEAM

BASED IN CHESTER

WE GUARANTEE EXCELLENT SERVICE

Call Benita to book your free initial consultation

01244 893175 – www.info@montacs.co.uk

On Time, Right, In Budget, With Added Value

Duncan Montgomery, Director

LLB (Hons), Dip.L.P, CTA, ATT

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